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    A Firm Has $80 Million in Equity and $40 Million
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A Firm Has $80 Million in Equity and $40 Million

Question 1

Question 1

Multiple Choice

A firm has $80 million in equity and $40 million of debt, it pays dividends of 20% of net income, and has a net income of $10 million. What is the firm's sustainable growth rate?


A) 7%
B) 8%
C) 9%
D) 10%

Correct Answer:

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